Wednesday, February 20, 2019

Elements of Marketing Mix Essay

Elements of Marketing Mix A typical merchandise unite includes a produce, offered at a legal injury, with some promotion to class potential nodes about the output, and a way to reach the customers drift (Perreault & McCarthy, 2004, pg. 36). A keep company depart use the commercialize placeing desegregate in set to control variables in merchandising to satisfy a target group. This paper will describe the quartette elements of the marketing mix yield, place, price, and promotion. In addition, the four elements of the marketing mix will be discussed on the impacts in the development of Starbucks marketing strategy and tactics.ProductThe product atomic number 18a is concerned with developing the remediate product for the target market (Perreault, 2004, pg. 38). This requires a company to determine what item or service is sought after by the customer in order to fulfill involve. The product needs to provide a service, coer the expected needs for the customer, or save u p the expectations created by other elements of the marketing mix. Service, benefits, branding, and packaging atomic number 18 some things that ar taken into leadation with an organizations product (Perreault et al, 2004). The over exclusively object is to offer a product that will satisfy the wants and needs of community. mooragePlace is concerned with all the decisions involved in getting the right product to the target markets place (Perreault et al, 2004, pg. 39). Place refers to the speech confabulation of a product or service to a location that customers may obtain from. This step is needed to get the finished product from the company or origin to the consumer. Marketers need to consider the just about efficient system to distribute an organizations product. Channel type, market exposure, locations of stores, service levels, means of transportation and distributing ar factors that argon taken into considers when marketers need to develop a strategy for place (Perr eault et al, 2004). The overall objective is creating a place in order for customers to buy the product.PricePrice setting must consider the kind of competition in the target market and the cost of the upstanding marketing mix (Perreault et al, 2004, pg. 40). The price is the amount that will be aerated for the product. Managersmust know current practices as to markups, discounts, and other terms of gross revenue event (Perreault et al, 2004, pg. 40). The prices set by competitors will affect the price of the product. Organizations use price techniques in order to reach a competitive price of the product. Prices are set by a company in order to bring profitable or to even reach the break even point. Flexibility, product life, cycles, geographic terms, discounts, and allowances are factors that must be considered before setting the price of a product (Perreault et al, 2004). In addition, pricing strategies also will qualify according to region. For example, a product that sel ls for a price of 10 vaulting horses in California may only sell for 7 dollars in the assure of Georgia. The overall objective is the set the right price for the product. processionPromotion is concerned with telling the target market or others in the pipeline of distribution about the right product (Perreault et al, 2004, pg. 40). Promotion is how the marketer will communicate, inform and persuade customers to purchase a product or service. on that point are many ways in which to market the product. The marketer must take in account multiple ways of promotion person-to-person selling, mass selling, and sales promotion. All can be mixed to create the right blend that will target the marketplace. Personal selling involves transmit communication between a company and their customer, usually face-to-face. However, direct communication can also be through phone interviews or sales calls, conferences through video and the internet (Perreault et al, 2004). Promotion can also be use d to target a large group of consumers at the alike time such as radio or television advertising. This is cognise as mass selling. Finally, sales promotion refers to promotion activities that do not involve advertising and personal selling. Contest, coupons, and special offers are some examples of sales promotions (Perreault et al, 2004).Starbucks Marketing MixStarbucks Coffee mission statement is to establish Starbucks as the premiere purveyor of the finest coffee in the world while maintaining our uncompromising principles while we beat (Starbucks, n.d.). Starbucks has utilized the four marketing elements to help create an subtle impact in the development of their marketing tactics and strategies. Starbucks originated in Seattle, Washington, over 30 years ago,and owns more than 12,000 stores worldwide. Starbucks achieved this by creating a successful marketing strategy. Starbucks was recognized 7 times as one of the 100 beat out Corporate Citizens by Business Ethics Magazine (Shareholder, 2007). Starbucks customers include people of different ethnicity, income, and age groups with varying tastes and interest. With this diverse clientele, Starbucks has made marketing a challenge to target all these diverse groups of people.ProductStarbucks is dedicated to buying the highest quality coffee and paying premium prices to reflect ongoing cargo to coffee-farming communities (Shareholder, 2007). The reason Starbucks offer so many different varieties of products is to satisfy the diverse clientele. This company has continuously been able to influence their clientele by whirl products that appeal to all cultures. Starbucks has been able to meet a specific market demand. Starbucks gives a wide range of food and beverage options, from indulgent treats to lower-fat and reduced-calorie choices for all consumers tastes (Shareholder, 2007). Starbucks continues to innovate and extend the Starbucks Experience with imaginative revolutionary ready-to-drink beverages a nd expanding coffee offerings.PlaceStarbucks stores are strategically placed in locations that are visible and have a great deal of traffic. Starbucks is successful at placing their products strategically in order to impact sales volume. According to the Starbucks 2006 annual report, we opened 2,199 new stores world-widely (ahead of 1,800), at an medium pace of six new stores per day, manner of speaking our total to 12,440 stores in 37 countries (Shareholder, 2007). They have locations on busy alley corners, in malls, theaters, office buildings, grocery stores and airports which have allowed them to be clearly visible. about anywhere a person turns there is a Starbucks around the corner.PriceStarbucks does not consider their price to strategy to be of significance compared to the other elements in the industry. The companys 12-ounce tall latte ranges from $2.25 in Minnesota to $3 in New York City (Wong, 2004). Like any company, prices are base on the level of economy in each a rea. Starbucks prices largely are also based on manufacturing.Starbucks prices reflect cost of coffee beans, sugar, geographical areas, and the overall experience. Distribution also plays a role in how the product is priced at each company.PromotionStarbucks employs a mix between personal selling and sales promotion. Personal selling lets the salesperson adapt the firms marketing mix to each potential customer (Perreault et al, 2004). Starbucks does not nevertheless have salespeople, but baristas. Starbucks baristas inform and sell the product face-to-face to the customers. Starbuckss promotions do not include traditional advertising, but global sales promotions. Sales promotions spark purchases by customers through different channels.In prideful of 2006, Starbucks supported Jumpstarts Read for the Record campaign. They sold 53,000 copies of The littler Engine That Could and hosted 330 reading events setting an official Guinness world record. Furthermore, incentive sales promoti ons included donating 5 cents for every bottle sold for the Ethos pissing Fund. The Ethos Water Fund focuses on improving local water sources and providing sanitation and hygiene education to the communities in Ethiopia and Indonesia (Shareholder, 2007). People want to be apart of Starbucks global efforts and these are examples of effective sales promotions.ConclusionWhen developing a marketing, all decisions impact the four Ps should be made at the same time. The four elements of the marketing mix are equally important. This is because the products, places, prices, and promotions of an organization surround the most important element the customer (Perreault et al, 2004). According to Starbucks 2006 annual report, There are numerous competitors in almost every market in which Starbucks operates and in which it expects to expand in both the specialty coffee beverage bank line and the specialty whole bean coffee business (Shareholder, 2007). Starbucks has proven to vex on top of their market. However, Starbucks and any organization need to continuously picture their marketing mix in order to stay competitive and profitable. By successfully completing the circle of the four Ps, Starbucks has established a multi-million dollar organization that is a Fortune 100 Company.ReferencesPerreault, W. D. & McCarthy, E. J. (2004). Basic Marketing A Global-Managerial Approach. The McGraw-Hill Companies. Retrieved Nov. 11, 2007, from https//mycampus.phoenix.edu/secure/resource/resource.aspStarbucks, (n.d.). Retrieved Nov. 11, 2007, from http//www.starbucks.com/aboutus/environment.aspShareholder, (2007). In Starbucks Coffee 2006 Annual Report. Retrieved Nov. 11, 2007, from http//www.shareholder.com/visitors/dynamicdoc/document.cfm?CompanyID=SBUX&DocumentID=1382&PIN=& paginate=13&Zoom=1xWong, B. (2004, Sept. 28). In Cup of Starbucks going up average of 11 cents Oct. 6. Retrieved Nov. 11, 2007, from http//seattlepi.nwsource.com/business/192721_coffeeprice28.html

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